Performance Analysis

Overview of performance for the consolidated fiscal year under review

During the fiscal year ended March 2017, the Japanese economy is still recovering, but continues to face uncertainities such as uncertainity in the overseas economies, the impact of foreign exchange rates fluctuations, and the influence from the downturn of the economy is a concern. There is still some anxiety for the future.

In the medical device industry, the remuneration for medical treatments in FY2016 has been a negative revision as a whole.Medical institutions face continuous demands for efficient and high-quality healthcare.

As a result, the Group posted a consolidated “Net sales”of 121,747 million yen (up 3.9%year-on-year basis) for this consolidated fiscal year. “Operating profit”of 12,062 million yen (up 13.3% on a year-to-year basis), “Ordinary profit”of 12,201 million yen (up 11.6% on a year-to-year basis), and “Profit attributable to owners of parent”of 8,776 million yen (up 19.1% on a year-to-year basis).

Fukuda Colin Co., Ltd.’s (formerly Omron Colin Co.,Ltd.) result of the fourth quater is included in the scope for the current consolidated fiscal year.

Overview of performance for the consolidated fiscal year under review by segment

1. Physiological diagnostic equipment segment

Although sales of blood cell counters and other products declined, consolidated “Net sales”were 36,881 million yen (up 0.6% year-on-year baisis) due to the addition of Fukuda Colin Co.,Ltd. to the consolidation.

2. Patient monitoring equipment segment

3. Medical treatment equipment segment

Sales of pacemakers, ventilators and the business of renting medical equipment for home treatment increased.
As a result, consolidated “Net sales”were 48,052 million yen (up 4.5% year-on-year basis).

4. Consumables and other products segment

In this segment, we mainly handle recording paper, disposable electrodes, and consumables used for devices handled in the above segments, as well as maintenance and repair services.
As the sales increased toward the end of the term, consolidated“Net sales”for this segment were 27,727 million yen (up8.5% year-on-year basis).

Outlook for fiscal year ending March 2018

Regarding the future of Japan’s economy, it is expected to continue to gradually recover. We at the Fukuda Denshi Group (herein after “the Group”), inspired by our corporate philosophy, remain dedicated to contribute to medical progress and healthcare in general in accordance with our social mission.

The Group expects a consolidated “Net sales”of 125,000 million yen, consolidated “Operating profit”of 12,500 million yen, consolidated “Ordinary profit”of 12,500 million yen, and consolidated “Profit attributable to owners of parent”of 8,000 million yen for the fiscal year ending March 2018.

Forecast shown in this material are just an outlook judged or assumed based on the information available at the moment, changes will be promptly disclosed when necessary.